What should I do if I have negative equity on my Ford Explorer?

"My car loan is for $28,000, but my Ford Explorer is only worth $20,000.

I want to lower my monthly payments, but I'm not sure where to start.

What should I do if I have negative equity on my car?"

Answer provided by
Eric Schad
Answered on Jul 26, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
“It’s unlikely that any lender will refinance you for the $8,000 in negative equity.
If you can afford it, put more money toward your principal each month. This might mean that you have to cut expenditures elsewhere. If you do this, you can reduce your negative equity at an exponential rate compared to just paying the monthly car note.
Next time you want a loan, shop around until you find a rate you can comfortably afford.”

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